Market Timing Tool
Should You Wait for Rates to Drop?
Lower rates sound great, but what if home prices rise while you wait? Use this calculator to see the true cost of delaying your purchase.
The Scenario
If You Wait…
Net cost of waiting 12 months
−$59,682
You give up $59,682 in wealth by waiting, even if the rate drops to 5.875%.
Where it goes
- Price increase (5% annually)
- −$25,000
- Rent paid (12 months)
- −$30,000
- Amortization missed
- −$4,682
- Total wealth lost
- −$59,682
Monthly Payment Reality
Buy Now
$2,956
Today @ 6.875%
Price $500,000
Buy Later
$2,795
In 12 mo @ 5.875%
Price $525,000
You save $161/mo by waiting — but at that rate it takes 31 years to recoup the $59,682 you gave up.
Disclaimer: This estimate is provided for illustrative and informational purposes only based on the scenario provided. Rates and payments assume a FICO® credit score of 780 or higher. This is not a loan approval or a commitment to lend. Interest rates, fees, and terms are subject to change without notice based on market conditions and borrower eligibility. Actual APR and terms may vary based on your credit history, income, assets, and property characteristics.
Custom Analysis
Secure your price today.
Let's run a total cost analysis for your specific market and price point to see whether waiting is worth the risk.
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- Reply within one business day
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Loans by Vai
The Hidden Costs of Timing
Waiting often feels safer, but in a growing market like Texas, time is literally money.
Price Increases
Even modest 5% appreciation adds thousands to the purchase price. If you wait a year for rates to drop 1%, the higher loan amount often cancels out the monthly savings.
Amortization
While you wait, you are paying 100% interest to a landlord. Buying now means you start paying down your own principal immediately.
Refinance Later
Marry the house, date the rate. If you buy now you lock in the price. If rates drop later you can refinance — but you can't refinance a higher purchase price.
Secure your price today.
Let's run a total cost analysis for your specific market to see if waiting is worth the risk.